Deputy Prime Minister Le Minh Khai chaired a meeting on the operations and restructuring of the Vietnam Chemical Group (Vinachem). Photo: VGP
On May 25, Deputy Prime Minister Le Minh Khai chaired a meeting on the operation and restructuring of the Vietnam Chemical Group (Vinachem) in the 2016-2020 period, the Vinachem restructuring project in the 2021-2025 period, solutions to improve operational efficiency in the coming time and the plan to restructure the parent company - Vinachem.
Vinachem is profitable, ensuring jobs for nearly 19,000 workers.
Vinachem's report said that in 2022, the production value reached 61,504 billion VND, equal to 125% of the 2022 plan, up 22% over the same period in 2021. Combined revenue reached 62,337 billion VND, equal to 119% of the plan, up 17% over 2021. Profit was 6,263 billion VND, an increase of 4,135 billion VND in efficiency compared to 2021. Budget payment was 2,349 billion VND, equal to 137% of the 2022 plan.
With the achieved results, Vinachem Group ensures jobs for nearly 19,000 workers, with an average salary of 13.6 million VND/person/month, an increase of 8% over the same period in 2021.
In 2023, Vinachem sets a target of industrial production in actual value reaching 54,549 billion VND; combined revenue reaching 57,152 billion VND; combined profit reaching 3,471 billion VND,...
Regarding the restructuring work in the period of 2016-2020, Vinachem has coordinated with consulting units to carry out the work of determining the enterprise value of 23 enterprises; organized public auctions at the Stock Exchange for 14 enterprises; successfully and partially successfully divested capital at 9 enterprises. The value obtained was 3,206 billion VND, net profit was 2,948 billion VND.
Implementing the Government's direction on prioritizing debt repayment for the Ninh Binh Fertilizer Plant Project, Vinachem has so far repaid the principal of 237.5 million USD, equivalent to 95% of the loan value of 250 million USD. Accumulated to the end of March 31, 2023, the group has paid a total of 6,174 billion VND in interest to VDB Bank and 4.56 million USD for the Ninh Binh Fertilizer Plant Project.
Focus on developing platform industries
The Group and its member units focus on developing basic industries such as fertilizers, chemicals, rubber industry, electrochemistry (battery production) to meet domestic production needs...
Regarding the plan to restructure the Parent Company - Group, currently the Parent Company - Group has 2 industries and fields that are included in the classification criteria according to Decision No. 22/2021/QD-TTg of the Prime Minister, with the State ownership ratio at 2 different levels. To ensure the role of state-owned enterprises, the Group proposes that the State's holding ratio be at the highest level when equitizing enterprises, which is from 65% of charter capital or more.
Regarding the development and reception of comments from ministries and agencies on the restructuring project of the group for the period 2021-2025, the restructuring project has been implemented since 2020 in accordance with regulations. The main contents of the project include: Development strategy orientation, business orientation, products, markets and business lines; on the arrangement of member units.
Deputy Prime Minister Le Minh Khai agreed with the policy of adding the electrochemical industry and supported Vinachem in increasing its charter capital. Photo: VGP
Restructuring Vinachem, promoting its leading role in the chemical industry
To improve operational efficiency in the coming time, Vinachem Group proposes the following solutions: Restructuring the group to ensure a reasonable structure, promoting the leading role in the chemical industry, maximizing potential and strengths, focusing on highly effective industry groups; researching, investing step by step, and effectively developing a number of chemical products with modern technology, environmentally friendly, suitable for the development needs of society.
Strengthening the parent company - The Group ensures sufficient resources to develop large-scale, important chemical industry projects, operate and orient the development of subsidiaries according to the Group's development strategy, operate production and business effectively, contribute to ensuring some balances in the national economy, contribute to ensuring the strategy of food safety and security in the new situation.
Resolutely handle subsidiaries, affiliated companies, investment projects that are behind schedule, operating at a loss, and ineffective according to market mechanisms and legal regulations to minimize losses for the state, the corporation, and society.
Regarding the target, Vinachem Group strives to achieve a growth rate of 9.5% per year; total revenue of the whole group reaches an average of 7.4%; total profit of the whole group is estimated at about 19,000 billion VND.
The Group also proposed that competent authorities consider and promptly approve the plan to restructure the Parent Company - Vietnam Chemical Group for the period 2022-2025 in the direction of "maintaining the Parent Company - Vietnam Chemical Group as a one-member limited liability company, with the State holding 100% of the charter capital for the period 2022-2025"; approve the Project to restructure Vietnam Chemical Group; promptly consider and approve contents related to the handling plan for 3 fertilizer projects under Vinachem;...
The approved restructuring project will create a new direction for Vinachem to operate and develop.
At the meeting, representatives of the Government Office, Ministry of Home Affairs, Ministry of Industry and Trade, Ministry of Finance, Ministry of Labor, Invalids and Social Affairs, Party Committee of Central Enterprises, Ministry of Planning and Investment, Steering Committee for Enterprise Innovation, Ministry of Justice... highly appreciated the efforts and production and business results of Vinachem achieved in 2022, the set targets all increased, and business was profitable.
The restructuring project has been developed by the Group and the State Capital Management Committee at Enterprises in accordance with regulations. The opinions of ministries and agencies have been collected to unify the content and submit it to competent authorities for consideration and decision.
Basically agreeing with the draft project, opinions said that in the coming time, if the restructuring project is approved, it will create a new direction for the group to operate and develop.
Representatives of ministries and branches also gave their opinions on the plan to reorganize the parent company Vinachem; proposed to add main business lines (add electrochemical business lines, focusing on battery and accumulator production, power storage); ensure conditions and resources to increase charter capital of the parent company; solutions to completely handle 3 loss-making and weak projects; plan to reorganize and restructure enterprises, divestment implementation; implementation of political tasks and Party building work, policies and regimes for employees of units that will divest; responsibilities of ministries and branches in organizing implementation...
Deputy Prime Minister Le Minh Khai hopes that Vinachem Group will continue to make efforts to successfully restructure in the coming time, operate stably and develop. Photo: VGP
Meet the needs of the economy, ensure efficient operation
Concluding the meeting, Deputy Prime Minister Le Minh Khai highly appreciated Vinachem, the State Capital Management Committee at Enterprises, and ministries and branches in advising and developing the project. The Deputy Prime Minister assessed that Vinachem's production and business organization has achieved many important results, being ranked B for 2 consecutive years, especially in 2022, Vinachem has made great efforts and operated very effectively on all criteria.
According to Deputy Prime Minister Le Minh Khai, in the difficult context, in 2022, Vinachem's gross profit reached over 6,000 billion, and factories that have been in a weak position for a long time also made a profit of over 2,000 billion, which is a very positive result. The Deputy Prime Minister hopes that the group will continue to make efforts to successfully restructure in the coming time, operate stably and develop.
Affirming the important role of Vinachem in the economy and people's lives, the Deputy Prime Minister requested the State Capital Management Committee and Vinachem Group to absorb the opinions of ministries and branches, complete the draft project, in which it is necessary to carefully evaluate the achieved results, clarify the shortcomings, limitations, and causes, thereby proposing restructuring solutions that are truly feasible, effective, and guaranteed to be put into practice.
According to the Deputy Prime Minister, the reason why the restructuring of Vinachem in the previous phase did not meet the requirements was because in the process of developing the project, fluctuations such as the impact of the COVID-19 pandemic; market impact, etc. were not fully anticipated.
Therefore, the Deputy Prime Minister requested that the development of the Vinachem restructuring project in the next phase must ensure a comprehensive and clear legal and political basis, carefully assess the existing causes from the previous phase to gain experience, at the same time, anticipate the situation, predict fluctuations, carefully assess situations to prepare effective solutions for each situation and time, ensuring effective implementation.
Deputy Prime Minister Le Minh Khai emphasized: As a state-owned chemical group, Vinachem must both meet the needs of the economy and people, especially essential goods, and operate effectively, preserving state capital.
Agree on the policy of adding the electrochemical industry; support Vinachem to increase charter capital
Regarding the recommendations, the Deputy Prime Minister agreed with the policy of adding the electrochemical industry as proposed by Vinachem; stating that this is not a new industry, is part of the industrial development strategy and is suitable for market demand...
Regarding the charter capital increase, "the spirit is to support" but must ensure sufficient conditions and resources according to regulations to increase capital. Accordingly, Vinachem must balance its own resources to increase charter capital to complete the set tasks and goals.
Regarding the work of restructuring enterprises and divestment, the Deputy Prime Minister requested careful calculation of the roadmap and timing to decide on a reasonable holding ratio in accordance with regulations and authority. Divestment must ensure efficiency, not mechanically, especially with "golden goose"….
Regarding the proposal to retain 100% of the parent company's charter capital in the 2022-2025 period, the Deputy Prime Minister requested Vinacem to coordinate with relevant agencies, follow the correct procedures and regulations to submit to the Prime Minister for consideration. However, during the period before equitization, Vinachem must be proactive and prepare the conditions for effective implementation after the decision is made.
Regarding the financial handling of Vinachem's three long-term loss-making projects, the Politburo has given the policy, and the Deputy Prime Minister has requested the Ministry of Finance to quickly complete the plan with the spirit of "the sooner the better".
Regarding the proposal related to taxes applied to domestically produced and imported fertilizers, the Deputy Prime Minister suggested researching and proposing solutions and submitting them to competent authorities for consideration at an appropriate time, ensuring publicity, transparency, equality, respect for international commitments and protection of domestic production./.
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